Retention Rate & Cohort Analysis

Within the e-commerce field, customer retention metrics can be considered crucial for several reasons. Among these, the virtual absence of a barrier to entry for competitors in the virtual arena makes online sellers willing to build an enduring relationship with their customers.

From the possible methods available for finding retention rates and understanding the customer journey, I will use one from the family of cohort methods.

In this method, customers are divided into groups (that is, cohorts) that share relevant segmentation attributes.

I have created simulated data for customers who joined in OCT 2018 and how have they contributed till APR 2019 for a fictitious eCommerce company selling fashion/lifestyle products.

Hence, customers can be divided by gender, brand, category and so on.

Check the app here.